The Jamesway Corporation had the following situations on December 2021. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022. On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022. If none of the adjusting journal entries were recorded, would assets, liabilities, and shareholders’ equity on the 12/31/2021 balance sheet be higher or lower and by how much? This is the question I am stuck on. Does the employees salaries not factor in the December 2021 figures because the employees are paid on January 2022? How do I figure the amounts of liability and equity affected for number two, the note with 8% interest?
The Jamesway Corporation had the following situations on December 2021. Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022. On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022. If none of the adjusting journal entries were recorded, would assets, liabilities, and shareholders’ equity on the 12/31/2021 balance sheet be higher or lower and by how much? This is the question I am stuck on. Does the employees salaries not factor in the December 2021 figures because the employees are paid on January 2022? How do I figure the amounts of liability and equity affected for number two, the note with 8% interest?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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The Jamesway Corporation had the following situations on December 2021.
- Employee salaries for the month of December totaling $16,000 will be paid on January 7, 2022.
- On August 31, 2021, Jamesway borrowed $60,000 from a local bank. A note was signed with principal and 8% interest to be paid on August 31, 2022.
If none of the
This is the question I am stuck on. Does the employees salaries not factor in the December 2021 figures because the employees are paid on January 2022? How do I figure the amounts of liability and equity affected for number two, the note with 8% interest?
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